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Austrian lighting specialist ZKW to expand to the U.S. and Mexico

February 18, 2014

New locations in the U.S. and Mexico will ensure corporate growth

The Austrian lighting systems specialist ZKW is expanding its international marketing activities still further. In the coming months the company will build a production plant in Silao, Mexico. The complete portfolio of automotive lighting systems will be produced there, from high-quality LED headlamps to interior illumination. ZKW will then supply automobile manufacturers in the entire NAFTA region. The lighting systems supplier is also planning a marketing and development location in Michigan, USA. Here ZKW will cooperate closely with the location in Mexico and its other subsidiaries to support the automobile manufacturers in the NAFTA region. The expansion is also designed to increase sales further: In 2014 ZKW expects a turnover of EUR 735 million. The workforce is to increase to around 5,000. "This expansion will continue our strategy of following the customers in the major markets and safeguarding the locations. In this way we can satisfy the requirements of the various automobile manufacturers efficiently and flexibly on a local basis," explains Hubert Schuhleitner, CEO of the ZKW Group.

The new ZKW production plant in Mexico will be constructed in several stages. The first phase is scheduled to be completed by 2015 and provide up to 350 jobs. The total investment volume will amount to 40 million US dollars. The decisive factor in choosing the location was above all that it is central and close to all customers in the NAFTA region. Furthermore, Mexico has a large number of free trade agreements and thus offers important customs advantages. The ZKW subsidiary in Michigan will focus on research and development for the premium headlamp systems and marketing these in the USA. Some 30 jobs are planned at the new location in Michigan.